SURVIVING THE RECESSION

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SURVIVING THE RECESSION?
Mastering the 3 Rs Recession, Revalidation
Rehabilitation

• Dr Paul LITCHFIELD
• Chief Medical Officer
• BT Group plc

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Surviving the Recession?

• But it was all going so well

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Surviving the Recession?
Economic downturn isnt new

• Pre-Industrial Society
• War
• Pestilence
• Famine
• Natural Disaster
• Industrial Society
• Market collapse

• Poverty as the mediator of ill health

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Surviving the Recession?
Casualties of an Economic Downturn

• Work provides
• Personal worth
• Social interaction
• Life Structure
• Worklessness can lead to
• Increased anxiety depression
• Hypertension
• Diabetes
• CHD CVA

Its about more than just poverty
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Surviving the Recession?
Effects of Recession on Companies

• Impact
• Revenue falls
• Cash flow reduces
• Margins squeezed
• Profitability drops
• Dividends cut
• Share price falls

• Response
• Protect market share
• Pressure suppliers
• Reduce cost base
• Minimise Capex
• Tight controls on Opex
• Cut pay rates
• Reduce headcount
• Restructure

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Surviving the Recession?
Effects of Recession on Employees

• Impact
• Income falls
• Risk of job loss
• Role changes
• Workload increases
• Discretion reduced
• Atmosphere tense

• HSE Stress Factors
• Demands
• Control
• Support
• Relationships
• Role
• Change

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Surviving the Recession?
Most people do not lose their jobs

• Past focus solely on support for redundant
• People remaining subject to pressures
• Effects termed Layoff Survivor Sickness
• Companies rely on survivors to weather the crisis
• Companies need survivors to exploit the upturn
• The way restructuring is implemented is key
• Casualties and survivors need support

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Surviving the Recession?
Timeline for Restructuring Impact on People

• Anticipation Phase
• Insecurity quantitative (job loss)
  qualitative (job deterioration)
• Anxiety Depression. Raised BP and cholesterol
  IHD
• Men higher risk than women
• Execution Phase
• Increased work intensity workload and speed
• Anxiety Burn Out. Fatigue, MSD and increased
  accident rates
• Middle managers higher risk female managers
  esp. vulnerable
• Consolidation Phase
• Guilt (why me survive?), Uncertainty (me next
  time?) Role Ambiguity
• Depression. MSD and IHD. Disability pensions can
  double

Asynchronous experience for different parts of
workforce
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Surviving the Recession?
Impact of Restructuring on the Organisation

• Sickness absence rates rise may be x 2
• This compounds work intensity issues
• Presenteeism increases may be x 4
• Organisational commitment job satisfaction fall
• Relationships deteriorate Bullying
  harassment
• Performance usually deteriorates (quality poor
  even if productivity up)
• Compliance falls risk taking increases more
  accidents
• Employee turnover rises remains high after
  upturn
• Voluntary leavers tend to have the most
  marketable skills
• Productivity rises in 1/3 of companies but falls
  in 1/3
• Only 32 of companies reported a rise in
  profitability

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Surviving the Recession?
Mitigation of Restructuring Effects - 1

• Application of sound change management principles

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Surviving the Recession?
Mitigation of Restructuring Effects - 2

• Pay adequate attention to Perceived Justice
• Distributive Justice
• Selection Criteria (needs efficiency)
• Procedural Justice
• Consistency Absence of Bias Accurate
  Information
• Interactional Justice
• Clear, Early, Open and Personal Communication

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Surviving the Recession?
Mitigation of Restructuring Effects - 3

• Give psychology equal weight to finance
  structure
• Consider existing culture norms (may vary
  across company)
• Take account of diversity between groups
  individuals
• Ensure clarity of new roles (capability
  training)
• Consult involve employees (AFARP)

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Surviving the Recession?
Mitigation of Restructuring Effects - 4

• Develop a comprehensive communications strategy
• Early comms to reduce uncertainty and permit
  adaptation
• Coherent information disseminated at about the
  same time
• Sensitivity to diversity of experience
  responses to change
• Use of multiple channels but emphasis on face to
  face
• Dialogue to allow questioning and airing of
  doubts

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Surviving the Recession?
Mitigation of Restructuring Effects - 5

• Engage middle management to deliver change
• Shared ownership builds energy future focus
• Transformational leadership promotes acceptance
• Charisma, Inspiration, Intellectual Stimulation
  Individual Consideration
• Buffering chaos integration into business as
  usual
• People focussed empathy with positive thinking

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Surviving the Recession?
The People Strategy Key Themes

• Engaged people
• Connected performance
• Excellent leadership
• Transformed skills
• Healthy environment

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Theme 5 Creating a healthy and diverse
environment where excellence prospers
Surviving the Recession?
Changing Behaviours
Dependence Independence Interdependence
Primary engagement Secondary intervention Tertia
ry resolution
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Surviving the Recession?

• Components of Mental Health Framework
• Primary - reducing stress at source and making
  adjustments
• Secondary - identifying early signs of distress
  and supporting individuals
• Tertiary - assisting established cases cope and
  recover

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Surviving the Recession?

• BT Mental Health Toolkit
• Promoting good mental health
• Positive Mentality Management Competencies
• Managing Pressure Achieving the Balance
• Support when mental health at risk
• STREAM Health Wellbeing Passport
• STRIDE Employee Assistance Management
• Managing mental health issues
• Open Minds Head First Employee Assistance
  Programme
• Mental Health First Aid Occupational Health
  Service

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Surviving the Recession?
Rehab
Stepped approach
CBT Tel, F2F
OHS
CCBT
Couns.
Guided Self-help
Stay at Work Get back to Work Move on with dignity
MH 1st Aid
HR LM
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Surviving the Recession?
BT Mental Health Dashboard
Plus Employee Engagement Benevolent Fund -
Suicides
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Surviving the Recession?
Not all parts of a business are the same
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Surviving the Recession?

• Targeted Tailored Mental Health Interventions
• Analyse the data by division business unit
• Determine nature of issues and at risk groups
• Get buy in from key stakeholders
• Integrate with unit business priorities
• Construct plan from menu of interventions
• Deliver through business communication channels
• Measure impact and revise

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Surviving the Recession?
Impact of targeted interventions
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Surviving the Recession?
A Risk Management Approach?

• Recession is a hazard to business
• Recession is a hazard to people
• Many risk factors are recognised
• Companies control some risk factors
• The way business treats people is key
• Casualties and survivors need support
• Effective OH operates along all the river
• Harm to people and business mitigated

Creating a healthy environment where excellence
prospers
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paul.litchfield_at_bt.com